A stock has a beta of 125 and a reward-to-risk ratio of 595


1. A stock has a beta of 1.25 and a reward-to-risk ratio of 5.95 percent. If the risk-free rate is 4 percent, what is the stock's expected return? Please show work.

2. Investopedia Limited has recentky issued bonds that matures in 10 years. They have par value of $1000 and an annual coupon on 6%. If the current market interest rate is 6% at what price should the bonds be sold?

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Financial Management: A stock has a beta of 125 and a reward-to-risk ratio of 595
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